Interesting observation Larry. You may be right.
I have been churning my JDSU shares and trying to lower my buy price.
Again I am looking for going long on multiple tech shares,
and stop day trading because I think there will be less volatility in the market
in the next couple of years than
there was in the last 3 years, because of less amount
of money to invest, by investors: people need to buy
stocks, for stock prices to go up.
We now have several events that are hitting the Nasdaq
from "Irrational Exuberance " heights,
that may curtail people buying stocks as well as other things to spur the economy:
a)Higher Health costs: I believe this is the worst offender.
It has been widely underestimated by everybody.
The Health Crisis is just beginning. Nursing shortage
will hit the most in the next two years.
Your out of pocket costs will balloon.
The first casualty is here: A " seniors Drug Plan " is ditched. No money. I had predicted that.
b)As stock options are less attractive, employees will want, " real money " and " real health benefits ",
not watered down HMOs.
c) Health co-pays are rising
d) soon, companies will give employees their own money to buy health insurance.More expensive.
So the question is, how much money will be left,
for J6P,
after you've paid for higher health and energy, to
a) save , ( a reborn habit <vbg>),
b) buy more IT gadgets, PCs, cars, and communications equipment.
Furthermore, Uncle Sam ( Congress ) does not quite
understand the need for tax cuts and budget spending cuts
as a way to give consumers the money they need for all the above.
So I believe that the " tax and spend mentality "
that has ditched this economy has finally caught up
with folks. More so in California, the home of tax and spend.
TA |
